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Existing system of fiat currencies

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Using the United States as an example, discuss the goals and functions of central banks and how they may need to adapt if central bank digital currencies (CBDCs) are implemented within the country in which they are situated. When answering the question, consider the following:

-Are CBDCs an improvement on the existing system of fiat currencies? Justify your answer, considering the various parties that would use CBDCs, both wholesale and retail.

-What are the potential opportunities and challenges for central banks in implementing CBDCs? (please cite your sources)

Reference no: EM133059735

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